The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-05-21
THE LIBEL QUESTION.
Mr. Austin Further Explains
His Motives.
MORE AS TO HIS REPUTATION.
q
He Declares He Only Acted For the
Best Interests of Miss Williams
The Banks Condition.

wering the questions of his lawye a
to his intents and motives, and explain
ing the numerous transactions which
the libelous article cited as Showing
his bad faith with Miss Williams, the in
solyency of the bank, etc., etc.
Mr.. TERHUNE, the smelling man, ant
J. R Nichols first testified that Mr.
Austiu's reputation was good.
SAM. MCINTYRE testified as to his hav
ing taken Mammoth stock as collateral
in 1888, at about 81 per share. HI
thought Mr.. Austin's business reputa-
ton was good, though he owned tc
having heard him spoken well of and
spoken I'll of. Witness was an owner OIL
Mammoth himself; he Lad nearly
100000 shares of stock.
Mr.. AUSTIN S examination was again
resumed. He again submitted to the
jury the investment statements made
for Miss Williams. identifying the
transaction in which he sold her 1 500
shares of Mammoth at $3.50, in Febru
airy, 1883. He stated that he knew
nothing of any failure of the en-
|
London at that time, or of
anv probability of failure.
| Walker failure in London had no eff
feet on the negotiations. because he was
succeeded by stronger man-Good-
heart. The payment made February
26th (S35. 100 came from Goodheart;
also later one in April of $1,000. Up
to that time he had no apprehension
of any failure. No difficulty occurred
about the English payments until Good
heart came over here in April, when he
and Bowers had disagreement. Wit
ness had offers for the stock at 50. so.
and as high as 1925, from Cunningham
(for Dinwoodey). from Carney and
others. He declined to sell under FL.
He thought-far from intending to
cheat or defraud Miss Williams-that he
was doing her great favor. The bright
prospects OF the property warranted
that belief. The shutting down of the
furnace did not affect his belief. as he
knew the whole thing depended on the
negotiations with Goodheart. He was
familiar with sales of Mammoth in this
city IN February and March, 1888.
Walker Bros, W. s. Godbe and the
Widow Barratt bought at 81. 5O-the lat.
ter on the same day as Miss Williams.
On the first of March, tombstone gave
instructions to sell no more under So
He rather thought that Butler-Jobn-
stone did sell some stock below that fig
ure-to President Taylor at $l.S7L-a
special case.
Mr.. Austin stated that he had been
ready at any and all times to make a
settlement with Miss Williams; he
charged her 81 900 for his services for
four years. Questioned regarding the
allegations that he had received depos-
its at the bank after he knew it was in
trouble, he said emphaticaIly that as
soon as the Marshal came in with his
writ he ordered the teller to take no
more deposits. The oYerdrafts men,
toned by Mr.. Dooly, those of the Leeds
Banking Company and the Wasatch
Railroad, were contracted during the
regime of Mr.. A. Godbe, and
were known to Mr.. II. w. Law
renee, who was one of the local
directory of the bank. Referring to
the afldavits OF the bank that the paid
capital was f49 600, and that the share
holders were liable for the amounts
not called, Mr.. Austin said those
statements were true; the shareholders
had since paid up. He made these
statements in his affidavits as security
to customers, at the request of the d.
rectors. Mr.. Austin gave a sketch of
his experience in banking, from which
1t appears he had had au experience in
some OF the Oldest institutions of Eng
land, Scotland, Canada and New York.
Mr.. AUSTIN stated that it was
the custom to pay interest on
deposits (this in answer to the opinion
of Mr.. Dooly who said it was bad bank
ing to pay interest on deposits). It was
also the custom here he understood.
He paid interest with the full knowl-
edge OF the directors. The bank was fully
solvent when it was attached. The col
lections OF assets and payments by
shareholders made up total of $780,
GOO to meet a liability of $64 900 or
$50 600. There still remained the mine
OF Silver Reef which he could have sold
some time ago for 10000, but which
the directors would not accept. Besides
this there was some real estate.
He cited instances of what had been
lost by the attachment, the G, w, Davis
account of IS 500, the Broadway contract
held on Bowers note of some S12, 900,
and various other accounts that had to
be compromised. He said the cash the
bank had on hand and with its CORES.
pondent at the time of the attachment
amounted to over II per cent. of the
liabilities, more than the per centage
required by the national banking act.
He usually kept 25 or 80 per cent. on
hand, but the cash on hand this day
had run down owing to Bowers warn.
ing certain depositors that he was about
to attach. The defect in the bank's
charter was that it should have been a
local corporation; it being a foreign cor.
poration it could be attached on any
bogus claim any one saw fit to TRUMP
up.
Mr.. RAwLINs asked witness whether
Wells, Fargo & Co. had not had some
lilgation with the London Bank-as
throwing some light on Mr.. DooIy's
evidence i'll the case. Mr.. Brown
tanned.
Going into the question of transfers
OF property, Mr.. Austin explained that
ne had sold real estate to the amount of
81 600: he produced a deposit hook in
the Deseret National Bank, showing a
deposit OF that amount. 1t was from
TINS deposit that ne made the 81 600 re
mlttance to Miss Williams. He had
nnnertaken the management of Miss
williams affairs st lely out of friendship.
TINS friendship had continued on his
part until he had received the 7rib,Ins
article IN London. Then he felt that She !
hau uone wrong, and his relations with
her ceased entirely No, ora - :